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The Birth, Adjustment and Death of States

  • Kjell Hausken

    (School of Economics, Culture, Social Sciences, University of Stavanger)

  • John F. Knutsen

    (Knutsen & Didriksen as)

The article proposes Erection, Adjustment, and Death mechanisms for governmental units, giving autonomy to each citizen as in a direct democracy. Rather than focusing on a narrow model with restrictive and specialized assumptions, and subsequent solutions, as has been common in the literature, the article takes citizens seriously acknowledging that they are best equipped to find their own solutions. The emphasis is on the practical approach of how citizens discover and implement their subjective preferences. Governmental units are subjected to some of the same market forces as ordinary firms, in the spirit of Coase (1988). This brings the interaction between governmental units closer to a market structure, and serves to eliminate or reduce many of the coercive elements of government.

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File URL: http://econwpa.repec.org/eps/pe/papers/0205/0205004.pdf
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Paper provided by EconWPA in its series Public Economics with number 0205004.

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Length: 20 pages
Date of creation: 15 May 2002
Date of revision:
Handle: RePEc:wpa:wuwppe:0205004
Note: Type of Document - pdf; prepared on pc; to print on PostScript; pages: 20
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Glomm, Gerhard & Lagunoff, Roger, 1998. "A Tiebout theory of public vs private provision of collective goods," Journal of Public Economics, Elsevier, vol. 68(1), pages 91-112, April.
  2. Bolton, Patrick & Roland, Gérard, 1995. "The Break up of Nations: A Political Economy Analysis," CEPR Discussion Papers 1225, C.E.P.R. Discussion Papers.
  3. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, vol. 40(3-5), pages 697-705, April.
  4. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
  5. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-31, December.
  6. Casella, Alessandra, 2001. "The Role of Market Size in the Formation of Jurisdictions," Review of Economic Studies, Wiley Blackwell, vol. 68(1), pages 83-108, January.
  7. Friedman, David, 1977. "A Theory of the Size and Shape of Nations," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 59-77, February.
  8. Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-27, August.
  9. Hausken, Kjell, 2000. "Migration and intergroup conflict," Economics Letters, Elsevier, vol. 69(3), pages 327-331, December.
  10. Bruno S. Frey & Marcel Kucher & Alois Stutzer, 1999. "Outcome, Process & Power in Direct Democracy," CESifo Working Paper Series 222, CESifo Group Munich.
  11. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
  12. Bordignon, Massimo & Brusco, Sandro, 1999. "Optimal secession rules," ZEW Discussion Papers 99-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Alessandra Casella, 2000. "Market Mechanisms for Policy Decisions: Tools for the European Union," NBER Working Papers 8027, National Bureau of Economic Research, Inc.
  14. Caplan, Bryan, 2001. " Standing Tiebout on His Head: Tax Capitalization and the Monopoly Power of Local Governments," Public Choice, Springer, vol. 108(1-2), pages 101-22, July.
  15. John F Knutsen, 2004. "As the People Want It, Blueprint for a New Confederation," Public Economics 0402004, EconWPA.
  16. Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October.
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